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Mettler-Toledo International Inc (NYSE:MTD)
Shiller P/E Ratio
36.89 (As of Today)

As of today, Mettler-Toledo International Inc's current share price is $322.06. Mettler-Toledo International Inc's E10 for the quarter that ended in Dec. 2014 was $8.73. Mettler-Toledo International Inc's Shiller P/E Ratio for today is 36.89.

MTD' s 10-Year Shiller P/E Ratio Range
Min: 12.21   Max: 38.64
Current: 37.1

12.21
38.64

During the past 13 years, Mettler-Toledo International Inc's highest Shiller P/E Ratio was 38.64. The lowest was 12.21. And the median was 27.51.

MTD's Shiller P/E Ratiois ranked higher than
84% of the 342 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 0.00 vs. MTD: 37.10 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Dec. 2014 was $4.208. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $8.73 for the trailing six years ended in Dec. 2014.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Mettler-Toledo International Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=322.06/8.73
=36.89

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mettler-Toledo International Inc's E10 for the fiscal year that ended in Dec14 is calculated as:

For example, Mettler-Toledo International Inc's adjusted earnings per share data for the three months ended in Dec. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Dec. 2014*CPI of Current
=4.172/234.812*236.818
=4.208

Since most companies do not have as long as 10 years history, GuruFocus uses 6 years to do the calculation.

Current CPI = 236.818.

Mettler-Toledo International Inc Quarterly Data

201209201212201303201306201309201312201403201406201409201412
per share eps 2.2803.3461.6902.2402.4303.6231.9302.4902.8904.172
CPI 231.407229.601232.773233.504234.149233.049236.293238.343238.031234.812
Adj_EPS 2.3333.4511.7192.2722.4583.6821.9342.4742.8754.208
201003201006201009201012201103201106201109201112201203201206
per share eps 1.1001.4901.8202.4061.4101.8202.0902.9111.6201.930
CPI 217.631217.965218.439219.179223.467225.722226.889225.672229.392229.478
Adj_EPS 1.1971.6191.9732.6001.4941.9092.1813.0551.6721.992
200903200906200909200912
per share eps 1.0000.8101.2102.009
CPI 212.709215.693215.969215.949
Adj_EPS 1.1130.8891.3272.203

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Mettler-Toledo International Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ShillerPE 24.7030.1835.6318.1724.7630.2424.4928.0831.0934.66

Mettler-Toledo International Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ShillerPE 25.7228.0829.8127.4631.9431.0929.4330.6830.2834.66
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